SB 833 — AN ACT CONCERNING VALIDATION OF CONVEYANCE DEFECTS ASSOCIATED WITH AN INSTRUMENT THAT WAS EXECUTED PURSUANT TO A POWER OF ATTORNEY.

General Assembly SubstituteRaised Bill No.

833 January Session, 2019 ANLCO ACTNo. CONCERNING VALIDATION OF CONVEYANCE DEFECTS ASSOCIATED WITH AN INSTRUMENT THAT WAS EXECUTED PURSUANT TO A POWER OF ATTORNEY.

3899 Referred to Committee on JUDICIARY Introduced by:

(JUD) AN ACT CONCERNING VALIDATION OF CONVEYANCE DEFECTS ASSOCIATED WITH AN INSTRUMENT THAT WAS EXECUTED PURSUANT TO A POWER OF ATTORNEY.

[(1)]LCO (A)No. The instrument was executed by an attorney-in-fact but was signed or acknowledged by the attorney-in-fact without reference to his or her capacity;

LCO3899 \\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00833-R011 of 2 SB.docxRaised Substitute Bill No.No.833 [(1)] (A) The instrument was executed by an attorney-in-fact but was signed or acknowledged by the attorney-in-fact without reference to his or her capacity;

833 [(2)] (B) The instrument was executed by an attorney-in-fact but does not reference the power of attorney;

(2) Any deed, mortgage, lease, release, assignment or other instrument made for the purpose of conveying, leasing, mortgaging or affecting any interest in real property in this state recorded after January 1, 1997, which instrument is executed pursuant to a power of attorney, but which power of attorney is not recorded on the land records of the town or towns where the instrument is recorded, is as valid as if the power of attorney had been recorded, unless (A) an action is commenced to avoid and set aside such instrument and a notice of lis pendens is recorded in the land records of the town or towns where the instrument is recorded within fifteenten years from the date of recording of such instrument,instrument. or (B) such instrument fails to state the consideration reflecting fair market value.

The provisions of this subdivision shall not apply to any conveyance where any deed, mortgage, lease, release, assignment or other instrument is executed by a fiduciary and the fiduciary is the grantee, mortgagee, leasee, releasee or assignee designated in such instrument.

Section 1 October 1, 2019 47-36aa(c) Statement of LegislativePurpose: Commissioners:

InTo Sectionvalidate 1(c)(2),a provisionsrecorded ofinstrument that would otherwise be subject to challenge due to the firstfact sentencethat werethe redraftedinstrument forwas clarityrecorded andwithout accuracy.an accompanying power of attorney.

JUDexcept Jointthat Favorablewhen Subst.the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.

LCO3899 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00833-22 of 2 R01-SB.docx }